Narrative
Full Description
Project narrative
In January 2020, a syndicate of 14 banks — including the Macau Branch of the Bank of China (BOC) — entered into a $600 million USD syndicated loan agreement with SMBC Aviation Capital Hong Kong 2 Limited — a Hong Kong-incorporated wholly-owned subsidiary of SMBC Aviation Capital Limited, an Ireland-incorporated and Dublin-based aircraft leasing company jointly owned by Sumitomo Mitsui Banking Corporation (SMBC), a subsidiary of Sumitomo Mitsui Financial Group, Inc. (SMFG) (30% ownership stake), Sumitomo Corporation (10% ownership stake), and Sumitomo Mitsui Finance and Leasing Company, Limited (60% ownership stake) — for general corporate purposes. The loan carried a maturity period of five years and was unsecured and was divided into a $200 million USD term loan with an interest rate based on LIBOR plus a margin of 92 bassis points (bps) and a $400 million USD revolving credit facility (RCF) with an interest rate based on LIBOR plus a margin of 97 bps. SMBC Aviation Capital provided a guarantee for the loan. The proceeds were to be used for general corporate purposes. BOC contributed $60 million USD. In addition to BOC, the following lenders contributed to the loan syndicate: Australia and New Zealand Banking Group (ANZ) ($75 million USD), CaixaBank, S.A. ($75 million USD), Cathay United Bank ($50 million USD), the Tokyo Branch of E.Sun Commercial Bank, Ltd. ($50 million USD), the Offshore Banking Branch of First Commercial Bank ($50 million USD), Bank of Taiwan ($40 million USD), Chang Hwa Commercial Bank ($35 million USD), Land Bank of Taiwan Co., Ltd. (LBOT) ($35 million USD), Crédit Industriel et Commercial (CIC) ($30 million USD), Hua Nan Commercial Bank, Ltd. (HNCB) ($30 million USD), Taiwan Business Bank (TBB) ($30 million USD), Bank of East Asia Limited (BEA) ($20 million USD), and The Shanghai Commercial & Savings Bank, Ltd. (SCSB) ($20 million USD). Those six lenders served as mandated lead arrangers and bookrunners. ANZ served as global co-ordinator and underwriter. Initial syndication began in November 2019. CaixaBank, Cathay United Bank, and E.Sun joined before general syndication. BOC and First Commercial Bank joined before general syndication. In general syndication, eight further lenders joined in. Bank of Taiwan, Chang Hwa Commercial Bank, and LBOT joined as lead arrangers. CIC, HNCB, TBB, BEA, and SCSB joined as arrangers.